USD likely to go higher
The USD index is higher by 0.23 percent and is likely to increase even further in the next 24 hours. If the bullish attitude is going to continue the resistance line might well again serve as support. The European data in which it is trying to diminish Greece’s debt might cause a reversal but the recession issues in the Euro zone are likely to weigh over this factor. The finance officials of the U.S. may put breaks to the monetary easing and rather pursue a more neutral approach. The dollar index is leading against its main counterparts.
Euro higher on expectations of Greece aid
The euro reached its highest peak in three weeks on expectations on reaching an agreement of providing a loan package to Greece at the meeting to be conducted next week of the Euro zone finance ministers. The euro was at $1.2878 from the level $1.2884 it was yesterday. The highest point was at $1.2899. The finance ministers of the Euro zone have decided to conduct a meeting on November 26 to reach an agreement on the Greece bailout issue which they failed to conclude in the 12 hours of a meeting conducted on November 21. The main hurdle is the cutting of the interest rates which would put them below the cost of funding for some of the other countries in the Euro zone.
Japanese yen weakest in seven months
The continuous pressure from the to be Prime minister of Japan Shinzo Abe on the Bank of Japan to continue monetary easing in order to meet the 3% inflation target and aiding the exports has made the Japanese yen experience the lowest point in seven months. The Yen was at 82.42 per dollar from 82.48 it was on Yesterday. It also the touched the 82.84 mark which is the weakest point for the yen since April. The Liberal Democratic Party leader Shinzo Abe believes that the weakening of the Japanese yen won’t be effective till the country acts single handedly in the Forex market. Strengthening of the Japanese monetary base is required to accomplish a set inflation target. The party has vowed to reach a 2 percent growth with the Bank of Japan if it wins the elections to be held on December 16.
Crude oil affected by Middle East tensions and Chinese data
Temporary cease fire between Israel and Hamas eased the supply risks and the weakening of the dollar along with an impressive Chinese industrial data provided support to the prices. Light sweet crude fell 8 cents which is about 0.1% and was at $87.28 a barrel. There are still worries that the ceasefire may not last. The growth in Chinese industry aided oil prices as the country is one of the main consumers of crude oil. The Crude oil being a dollar dependent currency will make it fall in price as the dollar index is on the rise.